Expanding opportunities and providing support for students
$820 million to expand access to higher education
For the first time ever, the Australian Government will support, through direct financial grants, students studying:
- at any registered Australian higher education provider, such as a public university, private university, TAFE or college
- any accredited undergraduate course, including higher education diplomas and advanced diplomas, as well as associate degrees and degrees.
By 2018, these reforms will see the Australian Government supporting over 80,000 more students as they pursue the best course for them.
This will increase options and pathways for students less prepared for university, while funding a wide range of qualifications that lead straight to jobs.
It will encourage innovative partnerships, especially in outer-metropolitan and regional areas where universities and TAFEs can work together to offer the skills and knowledge that local employers are looking for.
From 1 January 2016, the Government will provide $820.4 million over three years for these initiatives.
A more sustainable HELP system
The Government will continue to help students defer the cost of their study until they reach a point where it is fair that they begin to repay their loan.
To help to ensure the HELP loan scheme will be sustainably and fairly funded into the future:
- graduates will begin to repay their HECS debt only once they start earning over $50,638* from 1 July 2016
- the interest rate applied to HELP loans will be changed from an interest rate equivalent to the inflation rate to an interest rate that broadly reflects the cost of Government borrowings, with a maximum rate of 6 per cent.
Building better pathways to higher education
Maria wants to study a Diploma of Business Studies before she attempts a degree.
For the first time, under the Government's changes, Maria is guaranteed a Commonwealth-supported place for a much wider range of public or private institutions.
Further, Maria will be able to use her diploma for credit if she chooses to go on to university.
Maria will not need to pay a dollar upfront, as she can access a taxpayer funded loan from the Government.
Maria may also get a new Commonwealth Scholarship to help support her while studying.
* Estimate only.